Oil executives have secretly warned President Donald Trump and his team that the spiraling energy crisis created by his war in Iran is about to get even worse, according to the Wall Street Journal.
In a series of White House meetings, the CEOs of ExxonMobil, Chevron, and ConocoPhillips warned officials—including Energy Secretary Chris Wright and Interior Secretary Doug Burgum—that disruption to energy flows through the Strait of Hormuz would continue to create volatility in global energy markets, according to people familiar with the matter who spoke to the Journal. The title added that Trump did not attend the meetings.
The price of crude has spiraled since Trump launched “Operation Epic Fury” against Iran on February 28. Tehran has responded by choking the world’s energy supply, using drones and mines to strike tankers in the Strait of Hormuz—the narrow shipping lane connecting Gulf oil to the rest of the world. The U.S. oil benchmark is now hovering around $99 a barrel, up from $87 a barrel on the day of the White House meetings.
Announcements that the U.S. would ease sanctions on Russia and contribute to the largest-ever emergency oil release—some 400 million barrels—have done little to steady prices.
Exxon CEO Darren Woods warned that oil prices could rise past current elevated levels if speculators unexpectedly bid up prices, and that markets could see a supply crunch of refined products. Chevron CEO Mike Wirth and ConocoPhillips CEO Ryan Lance also conveyed their concerns about the scale of the disruption.
None of the executives blamed the Trump administration for the crisis, the Journal noted. But a senior administration official acknowledged that prices are going to continue to rise, and that there isn’t a lot it can do at the moment. The Pentagon has told the administration that options exist to open the strait, and the administration wants that to happen in weeks, not months.
Some oil executives say they are bracing for a prolonged period of high oil prices that may boost their profits in the short term but could ultimately damage the industry and the economy.
The White House is also hoping to increase oil flows from Venezuela, after Trump took de facto control of the country when he arrested its leader Nicolas Maduro in a nighttime raid earlier this year. Exxon told the administration it is evaluating sending a technical team to the country. Chevron, the only major U.S. oil company active there, said its Venezuelan production has reached record levels.
Burgum said the administration has been “working around the clock” with energy companies to stabilize global energy markets.
The White House has been contacted for comment.
